Deck 24: Database Marketing

Question 1

In market-basket terminology,________ is the term used to represent the probability that two items will be purchased together.

A) confidence
B) support
C) cohesion
D) assurance

Answer 1

B

Question 2

In market-basket terminology,a conditional probability estimate is referred to as ________.

A) support
B) cohesion
C) confidence
D) chance

Answer 2

C

Question 3

In RFM analysis,an R score of 5 shows that ________.

A) the customer has not made recent purchases
B) the customer has bought the most expensive item
C) the customer has frequently ordered costly items
D) the customer has purchased the least expensive item

Answer 3

A

Question 4

Which of the following RFM scores refer to the most valuable customer?

A) 111
B) 555
C) 123
D) 333

Question 5

Which of the following techniques uses a hierarchical arrangement of criteria to predict a classification or value?

A) market-basket analysis
B) RFM technique
C) Cooke method
D) decision tree

Question 6

Which of the following is the first step in the process of producing an RFM score?

A) dividing the customers according to the amount spent on purchases
B) sorting customer purchase records based on the purchase frequency
C) sorting customer purchase records by the date of most recent purchase
D) dividing customers into multiple groups and giving each group a score

Question 7

The RFM score is obtained by ranking the customers on the basis of pricing patterns.

Question 8

Which of the following is the basic idea of the decision tree technique?

A) to perform an RMF analysis and rank consumer according to their purchasing patterns
B) to select attributes that are most useful for classifying entities on some criterion
C) to produce computer programs for information systems
D) to use the minimum difference among the groups created by the decision tree algorithm

Question 9

In market-basket terminology,the ratio of confidence to the base probability of buying an item is called ________.

A) cohesion
B) support
C) confidence
D) lift

Question 10

Databases are a key component of database marketing.

Question 11

Which of the following marketing techniques refers to the application of business intelligence systems to the planning and execution of marketing programs?

A) ambush marketing
B) viral marketing
C) database marketing
D) guerrilla marketing

Question 12

Data mining techniques are essential for database marketing.

Question 13

Which of the following is a data mining technique for determining sales patterns?

A) RFM analysis
B) market basket analysis
C) composite analysis
D) regression analysis

Question 14

In RFM analysis,an F score of 1 shows that ________.

A) the customer has bought the least expensive item
B) the customer has frequently placed an order
C) the customer has always bought the most expensive item
D) the customer has rarely made a purchase

Question 15

In marketing transactions,the fact that customers who buy product X also buy product Y creates a ________ opportunity.

A) relationship selling
B) cross-selling
C) value added selling
D) persuasive selling

Question 16

Which of the following statements is true about decision trees?

A) Decision trees can be transformed into a set of If/Then rules.
B) Decision tree analysis is a supervised data mining technique.
C) Decision tree algorithms are similar to one another.
D) Decision tree programs produce computer programs for trees set up by analysts.

Question 17

________ shows how much the base probability increases or decreases when other products are purchased.

A) Lift
B) Support
C) Confidence
D) Cohesion

Question 18

In RFM analysis,an M score of ________ shows customers who have bought the least expensive item.

A) 2
B) 5
C) 1
D) 4

Question 19

Cheryl Inc.,a leading cosmetics manufacturer,wants to identify their most valued customers: Each customer is assigned an RMF score based on their purchasing patterns: One of their valued customers is rated a score of 545: In this case,the ideal action for Cheryl's sales team is to ________.

A) up-sell more expensive goods to this customer
B) contact this customer immediately
C) not waste any time on this customer
D) set up an automated contact system for this customer

Question 20

________ is a way of analyzing and ranking customers according to their purchasing patterns.

A) Composite forecast
B) RFM analysis
C) Regression analysis
D) Delphi technique

Question 21

RFM analysis is a complex technique which is difficult to implement.

Question 22

The more number of times two items occur in the same transaction higher is the probability of them being purchased together.

Question 23

The ratio of confidence to the base probability of buying an item is called support.

Question 24

What is database marketing?

Question 25

RFM scores can be used to concentrate the efforts of salespeople.

Question 26

RFM can be a useful tool to determine who your best customers are and who hasn't been in to the store in a while.

Question 27

A minimum difference among groups is used as the criterion for constructing the decision tree.

Question 28

What are decision trees? How do they classify people into groups?

Question 29

A high F score denotes that the customer has bought an expensive item recently.

Question 30

Market-basket analysis is used to explore cross-selling opportunities.

Question 31

Decision-tree analysis is a data mining technique that requires a high degree of supervision.

Question 32

A reporting system generating RMF data can be automated.

Question 33

What is a market-basket analysis?

Question 34

A market-basket analysis shows the products that customers tend to buy together.

Question 35

The frequency of customer purchases is not a determining factor for RFM score.

Question 36

Groups created by decision tree algorithms are as different from each other as possible.

Question 37

Define the three market-basket terminologies: support,confidence,and lift.

Question 38

A cross-selling opportunity is created when a consumer purchases only a single product.

Question 39

Describe the process of conducting RFM analysis.

Question 40

Customers with an RFM score of 555 are highly valued by organizations.